Four chit fund firm owners convicted

ADILABAD, FEB. 26. The Adilabad District and Sessions Judge, Samudrala Govindrajulu, on Thursday convicted four persons of a chit fund firm to undergo imprisonment for one day and pay a fine of Rs. 10,000 for cheating a depositor.

The Adilabad court public prosecutor, Raja Ram, said that M.Umadevi of Kagaznagar town lodged a complaint with the local police against the owners of Vasavi Chit funds, Kagaznagar. She reportedly deposited Rs. 20,000 with the chit fund company and was promised a sum of Rs. 40,600 on maturity after five years. The victim who approached the chit fund company for payment of the matured amount was forced by the owners to extend the term of the deposit. When she refused to extend the deposit for another five years, the owners threatened and drove her away.

The victim lodged a complaint with the police. The case, which came up before the court, saw the four chit fund owners being convicted for a day and forced to pay a fine of Rs. 10,000 each. The judge directed the police to arrest Gunde Shankaraiah, V.Tirupati, K.Mohan Reddy and J.Shyam Rao, owners of the chit fund company.